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MORE than one billion electronic invoices have been issued since Malaysia’s e-Invoice system came into force on 1 August 2024, with nearly 205,000 businesses participating in the digital tax reform, the Ministry of Finance said.
In a written reply published on Parliament’s website, the ministry said a total of 204,928 traders had submitted e-Invoices to date, reflecting what it described as a positive level of acceptance among businesses, including small and medium-sized enterprises.
Drawing on data from Phase 1 and Phase 2 of the implementation, the ministry revealed that 17,188 taxpayers previously identified as having failed to submit their Income Tax Return Forms had come forward voluntarily to regularise their filings.
The disclosures involved income from prior years amounting to RM1.4 billion, contributing an additional RM290 million in tax revenue.
The ministry was responding to a question from Datuk Dr Richard Rapu @ Aman Anak Begri (GPS-Betong), who sought updated projections on the impact of e-Invoicing on tax collection efficiency and fiscal governance, as well as the fiscal rationale for raising the exemption threshold to RM1 million beginning in 2026.
While the early data suggests improved compliance, the ministry noted that a post-implementation study has yet to be conducted, as the initiative remains at an early stage and is still within its transition period.
According to the ministry, the overall effectiveness and full achievements of the e-Invoice system will only be ascertainable once the initiative has been fully implemented across all affected businesses.
The Government has positioned e-Invoicing as a key pillar of its efforts to enhance transparency, strengthen tax administration and reinforce fiscal governance through digitalisation. - March 3, 2026
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